10-Year Yield at 5.365% Splits Stocks as AI Names Keep Leading
Updated
Updated · CNBC · Oct 7
10-Year Yield at 5.365% Splits Stocks as AI Names Keep Leading
3 articles · Updated · CNBC · Oct 7
Summary
$39 billion in 10-year Treasuries drew strong demand Wednesday, easing yields from session highs, but stocks still closed lower after the benchmark briefly hit 5.365%, its highest since April 2002.
Jim Cramer said that rate shock is dividing the market between credit-sensitive sectors and AI companies that can still borrow easily despite higher financing costs.
Finance, housing, utilities, entertainment, retail, autos and industrials are most exposed because their businesses or customers depend heavily on credit.
AI-linked borrowers such as data center builders, chipmakers, power providers and cybersecurity firms remain favored by lenders, helping keep the rally narrow and pushing AI stocks to lead the S&P 500 back to record highs.
Cramer pointed to SpaceX's reported $40 billion borrowing plan for Nvidia chips versus Skydance debt that quickly fell, arguing traditional companies still face rate pressure that AI largely escapes.